REAL ESTATE IN SERBIA FOCUS ON 2022
20 HOW QUICKLY ARE INSOLDAPARTMENTSANDRENTEDSERBIA? 22 REAL BUBBLEPRICESESTATEINASOAP 24 A
Ivana Vuletić Secretary-General of the Chamber of Commerce and Industry of Serbia’s Construction Industry Association
ANDFORPREREQUISITERAILANDMOTORWAYSHIGH-SPEEDAREAABETTERLIFEINVESTMENTS
Chief Urban Planner for the City of Belgrade QUALITY
OF OFFICE SPACE 26 RETAIL PARKS IN SERBIA CRISIS-RESISTANTARE 28 HUMANKIND WILL LOSE A WAR WITH NATURE 30 WITH EVERYOSIGURANJE,AMSTRIPIS A HAPPY TRIP AMS Osiguranje CONTENT www.diplomacyandcommerce.rs
MomirovićTomislav
12 TRANSFORMATIONSIGNIFICANTUNDERGOISBELGRADEABOUTTOA
REAL ESTATE IN SERBIA
Marko Stojčić
INDUSTRYCONSTRUCTIONINASCONSTRUCTIONGREENANIMPERATIVETHE
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Zoran Djurić General Manager of Miele Serbia & Montenegro NEW CONCEPT
16 HOW STABLE IS THE REAL ESTATE MARKET IN SERBIA? 19 LASTING
Minister of Construction, Transport Infrastructureand in the Government of the Republic of Serbia
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We are witnessing an incredible increase in real estate prices in Serbia. What is your opinion about that? Are these prices real or "in flated" and what would be the reason for such an increase, espe cially considering that real estate prices are currently falling across the world? Is there a risk of the socalled bubble bursting?
— The market, i.e. the supply and demand, dictate real estate prices. Another option is a con trolled market, that is the market that is under state control, which I don't think would suit anyone, and it goes against elementary human freedoms and business logic. The increase in real estate prices is most noticeable in Bel
n an interview for our magazine, Tomislav Momirović, Minister of Construction, Trans port and Infrastructure in the Gov ernment of the Republic of Serbia, talks about the effect of infrastruc ture on decentralization, the im portance of Novi Sad and Belgrade being well-connected and the real estate market.
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Serbia did not happen by chance but as a result of the stability of political institutions and favour able economic conditions. Also, apart from the guaranteed legal security for their capital, the devel oped infrastructure is yet another reason why investors choose our country to invest in.
grade, unlike in the rest of Serbia, except perhaps in the case of the prices of countryside cottages. The higher living standard in Serbia is conditioned by numerous positive developments and I am very glad that it has resulted in a greater number of people being able to resolve their housing issues. For its part, the state has launched numerous infrastructural projects like the construction of motorways and local roads, the rehabilitation of the existing and the construction of a new railway grid, which sig nificantly facilitated everyday life of our citizens, and the construc tion of the sewage grid and new wastewater treatment plants. All of these endeavours meant that we took very important steps toward a better quality of life for people in Serbia. The investment boom in
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— In short, the successful imple mentation of large infrastructure projects primarily "pushes" GDP upwards. This is mostly maintained with stable state finances and a better living standard for citizens. Our goal is to have a better trans port connection between Serbia, the region and the rest of the world,
The construction of modern infrastructure creates businessimplementandnotinpeopleopportunitiesnumerousforyoungtocontinuelivingtheirtownsandcities,havingtoemigrate,tosuccessfullytheirideas MOMIROVIĆTOMISLAV Minister InfrastructureTransportConstruction,ofandintheGovernmentoftheRepublicofSerbia INTERVIEW
by Dragan Nikolić
I
How much have numerous infra structure and large construction projects pushed up prices in the real estate market?
MOTORWAYS AND HIGH-SPEED RAIL ARE A PREREQUISITE FOR A BETTER LIFE AND INVESTMENTS
vestment for the future. As far as the state is concerned, the most important thing for it is that in the process of constructing real estate and selling it, everything is done in line with the relevant regula tions, and we can already notice that relevant government services are doing their part of the job as professionally as possible.
thus creating more opportunities for the Serbian citizens and improv ing their quality of life. On the other hand, the stable influx of foreign investors and the creation of new jobs for people in Serbia depend on the modernization of our infra structure and the ability to adopt and apply the highest global stand ards in all types of transportation of people and goods.
Has there been progress in issuing building permits? How long does it take on average now to obtain all the required papers and com mence construction?
and especially large state invest ments in the construction of infra structure, have a decisive impor tance for maintaining the country's macroeconomic stability. The pro jects that are being currently im plemented are the most important projects done in the last half-cen tury which goal is to completely modernize Serbia and equalize it in terms of development with the EU members.
— We are still at the top of the world when it comes to the speed of issuing building permits. For example, in March, according to the data collated by the State Sta tistics Office, 2,743 permits were issued, which is a 35.2-per cent increase compared to the same period last year. We are witness ing the biggest investment boom in the history of Serbian construc tion and infrastructure construc tion in the last 70 years. The total number of building permits issued in Serbia in 2021 was 30,039, and this trend has continued this year as well.Asone of the systematical ly-wise biggest ministries in the Government of the Republic of Serbia, our Ministry has a par ticularly large responsibility in the construction of modern Serbia and its economic future. Construction,
conditionseconomicfavourableandinstitutionsoftheaschancehappenSerbiaboominvestmentTheindidnotbybutaresultofstabilitypolitical
The opening of the high-speed Belgrade-Novi Sad railroad, in addition to the rehabilitation of the railway grid, also creates new opportunities for urban develop ment - practically creating a con urbation in this area. What will the new railway mean specifically for the residents of the two cities?
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— When you connect two of the country's largest economic, social and educational centres with a high-speed railroad and shorten the commuting between them to a very comfortable half an hour of comfortable, a whole range of possibilities opens up. There are already companies whose em ployees work in one city and live in another, which doesn't negatively affect the quality of their lives as they don’t have to move their fam ilies to their place of work. Now, it is much faster and more efficient to take the Soko high-speed train, than to travel by car or bus from one end of Novi Sad
We all know that the prices of real estate are formed based on the costs of urban construction land and construction costs. How does the price of building land affect such high prices, especially con sidering that many large devel opers in the residential construction segment obtained the land at more than favourable prices?
— Yes, those are the main ele ments when it comes to forming real estate prices, but market price fluctuations do not depend only on that. For instance, the most expen sive apartments in Belgrade were not built on land that was "obtained" from the state, but were bought at market value from citizens them selves. In times of economic stabil ity and prosperity, which this gov ernment has made possible, their business is growing, unemploy ment is declining and wages are increasing. This leads to a higher number of people wanting to buy real estate, either via a mortgage or for cash, thus making a safe in
to the other, let alone to Belgrade. The speed and safety of this train create not only tourism benefits, as evidenced during the latest EXIT festival, but also shorten the time of commuting to and from work and the time for fulfilling family and medical treatment obligations.
In order to improve the lives of citizens outside of Belgrade, I am particularly proud of the ecological project called "Clean Serbia", under which auspices a total of 160 kilometres of new sewage grid have been built so far, and four wastewater treat ment plants that will have been completed by the year-end. We are fundamentally changing the ecological picture of our beauti ful country. We are investing in and implementing new environ mental projects, and that is also a very important segment of Ser bia’s successful decentralization..
Is the Ministry preparing for the new wave of state urbanization and decentralization that is in evitably going to happen? The
In the last ten years, we have built close to 400 kilometres of motor ways and expressways, which puts us shoulder to shoulder with the developed countries in Western Europe. Every kilometre of motor ways and local roads ensures ef ficient and safe transportation of
people, connects regions, boosts economic potential and, most im portantly, facilitates the even de velopment of entire Serbia.
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We are creating opportunities for young people to live and work in their town of birth, not having to move, so they can successful ly implement their business ideas, and that is the biggest benefit. It remains to be seen whether the Belgrade citizens will take advan tage of this better connectivity and equal quality of life in smaller areas. Still, many jobs are not dependent on living in Belgrade, because can be done online, so it really doesn't matter where you live – be it in Novi Sad, Kragujevac or a cottage on the Tara Mountain – providing you have a stable Internet con nection and things you need for a comfortable life.
distance between Belgrade and other towns in Serbia is becoming shorter thanks to the new transport infrastructure, which can result in people departing big cities to live in smaller areas that are more comfortable for life. Do you see that as a good thing?
The high-speed railway is not the only thing that is crucial for the development of Novi Sad. The Novi Sad bypass road with a bridge over the Danube is the largest de velopment project in the city. Its successful completion will mean a lot to the residents of Novi Sad and all its visitors.
— No government in Serbian history has done more for the country’s decentralization than this one. We are at the peak of the investment wave in the construction of road transport infrastructure in Serbia.
In the last ten years, we have built close to Europeincountriesdevelopedwithtouswhichexpressways,andmotorwayskilometres400ofputsshouldershouldertheWestern
The greatest construction ac tivity is expected in the Belgrade region, 35.3% of the predicted value of new construction, followed by the Raška region (17.4%), the Mačva region (9.5%), the Srem region (7.8%) and the Južna Bačka region (6.8%), while the sum total of other
VULETIĆIVANA
The previous year was marked by large-scale investment activities in construction, which accounted for more than 5% of the gross do mestic product, while the value of the construction work increased by as much as 35%, and the number of employees by almost 10%.
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GREEN CONSTRUCTION AS AN IMPERATIVE IN THE CONSTRUCTION INDUSTRY
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total area of all constructed build ings in 2020 differ by only 20km2.
Salaries in the construction sector in 2021 went up by over 5%, while in December 2021, 2,916 building permits were issued in
In the coming period in Serbia, the continuation of investments, especially in infrastructure, has been announced, and we expect positive trends in construction to continue.In2022, the aforementioned trends have continued, so in Feb ruary 2022, 1,995 building permits were issued, which is 31.6% more compared to the same month of the previous year. Judging by the number of permits issued in Febru ary 2022 in the Republic of Serbia, they cover the construction of 3,434 apartments, of an average size of 68.9m². Observed according to the type of buildings, in Febru ary 2022, 78.5% of permits were issued for buildings and 21.5% for other types of objects. Looking only at the data regarding build ings, 72.8% of them are residential and 27.2% non-residential, while the majority of objects are pipe lines, communication and electri cal lines (64.3%).
To remind, in the first quarter of 2021, the year-on-year growth of gross added value in the con struction sector was the highest among all economic branches, i.e. 19.6 percent compared to the same quarter of the previous year.
Secretary-General of the Chamber of Commerce and Industry of ConstructionSerbia’sIndustryAssociation
December, a 34.3% increase com pared to December 2020.
Large theinfusedincyclesinvestmentandinvestmentsinfrastructurehave‘freshblood’intoconstructionindustry COMMENT READ THIS ON WEB
cursory glance at the official statistical data is sufficient to get the impression that the construction industry has been ex panding for several years now. Large investment cycles and in vestments in infrastructure have infused ‘fresh blood’ into the con struction industry. Currently, com panies in the construction indus try employ over 160,000 workers, and they number over 11,000.
The construction industry in Serbia currently employs slightly less than 160,000 people, which is equal to the number of people living in the three central Belgrade mu nicipalities - Stari Grad, Vračar and Savski Venac. The area that these three municipalities span and the
The Construction Industry As sociation organized two thematic weeks - "Urban and Rural Devel opment" and "Water".
Given all the above, it is nec essary to better inform both stu dents and their parents about educational profiles and employment opportuni
STATE AUTHORITIES HAVE BEEN COMPANIESHELPINGCONSISTENTLYCONSTRUCTION
In addition to the lack of qual ified labour, there is also the problem of an insufficient number of students enrolled in second ary vocational schools. By includ ing as many companies as possi ble in the dual education system, students would be prepared for construction work through prac tice during schooling. Construction companies have launched an ini tiative whereby, with the help of subsidies, training and re-training centres for construction workers should be formed in companies.
sent the sector’s interests before decision-makers in the executive branch, and jointly improve the business environment.
65 companies, whose turnover was over 15 billion dinars, took part in the Water thematic week, during which they concluded several con tracts worth from 10,000 euros to 500,000 euros.
According to the data collat ed by the State Statistical Office (RZS), the export of bricks, cement, concrete, mortar, stone and other raw materials for construction ma terials in the period from January to March 2022 amounted to 18.9 million euros (an increase of 52.9% compared to the same period in 2021), while imports amounted to 15.0 million euros (an increase of 8.5% compared to the same period in 2021). The export to import cov erage was 125.8%.
77 domestic companies that employ over 4,500 workers and generate a total income of more than 50 billion dinars took part in the Urban and Rural Develop ment thematic week. They con cluded five business contracts and ten preliminary contracts for pro jects worth from 10,000 euros to 3 million euros.
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At the Expo 2020 Dubai", Serbia brought business delegations for nine thematic weeks, which were jointly organized by the Cabinet of the Prime Minister of the Repub lic of Serbia - Platform Serbia, the Development Agency of Serbia and the Chamber of Commerce and In dustry of Serbia.
America, and the Middle East. There has been an increasing presence of our companies that are engaged in design and project management tasks, and less and less in the exe cution of works in the field.
areas ranges from 0.1% to 3.6%.
overtheyworkers,160,000employindustryconstructionincompaniesCurrently,theoverandnumber11,000
LACK OF WORKFORCE
In the first quarter of 2022, 4.3% more employees were engaged in the construction of buildings, struc tures and specialized construction works, including the manufacture of products from non-metallic min erals and architectural and engi neering activities compared to the same quarter of the previous year. Of the total employment in the Republic of Serbia, the construc tion industry accounts for 7.5%. In January and February of 2022, the average salary in the construction sector was 11.5% higher compared to the same period in 2021.
In 2021, the Chamber of Com merce and Industry of Serbia tried to assist construction companies in doing their business as much as possible, provide answers to current questions, launch initiatives for amendments and additions to the existing regulation, and repre
The lack and outflow of quali fied labour is a problem that the construction industry in the entire region has been facing for a long time. In Serbia, this problem is quite pronounced, considering that the increased investment ac tivity in the construction sector in Serbia in the previous period di rectly leads to the higher demand for construction workers.
Serbian builders are tradition ally engaged in Africa, Asia, South
According to the data collated in the first quarter of 2022, the value of the construction works in the Republic of Serbia increased by 10.3% (expressed in current prices), while expressed in constant prices, this value declined by 5.9% com pared to the first quarter of 2021. Of the total construction works, 97.1% were carried out in the Re public of Serbia, while the remain ing 2.9% were carried out on con struction sites abroad.
ties in the construction industry, before they choose which high school to enrol in.
emulsions, brick products, timber, etc. Of course, I have to mention growing energy prices.
Orook last month. At the meeting, representatives from various seg ments of the construction indus try discussed current challenges in the process of dual transition, green and digital transformation. Also, we hope that having the digitalization of the construction industry as a goal, our initiative to introduce the possibility of electron ic maintenance of the construction site diary and measurement book will be Companieswelcomed.that have produc tion in Serbia and use domestic raw materials have the opportuni ty to participate in the Chamber of Commerce and Industry of Serbia’s campaign called "Made in Serbia", which supports domestic produc ers whose products are assigned with Čuvarkuća quality trademark, as proof that the product was pro duced in Serbia.
Serbian companies have the po tential to support green construc tion. I am confident that subsidies that would encourage this type of construction would further in crease the number of companies interested in such investments.
Also, from talking to local manufacturers of building ma terials, we found that they currently have no problems with production, given that they have several months' worth of supply of raw materials.
DEVELOPMENT OF BIM TECHNOLOGY
Since modern life and the modern approach to work are in separable from digital solutions, earlier this year, the Construction Industry Association formed the Building Information Modelling Technology Section, which consists of representatives of companies that perform activities related to BIM technology in Serbia. BIM or information modelling of objects is a technology in which a 3D model of the building occupies a central place, with data presented in a formalized way, suitable for com munication, interpretation or pro cessing, which is then used in the stages of conception, design, con struction and utilization of facili ties. Every month, among other things, the Section holds expert meetings called "BIM in Practice" at which companies that are BIM leaders present their projects.
ENERGY EFFICIENCY AS AN INEVITABLE TOPIC Energy efficiency is an inevi table topic in the modern world. Announced subsidies for citizens in the form of funding for replac ing doors and windows are also a way to help the construction in dustry and raise awareness of the inevitability of this approach in construction. We hope that in the future there will be room in
INSTABILITY OF SUPPLY AND PRICE OF CONSTRUCTION MATERIALS
the Serbian state budget for sub sidies for companies that imple ment energy-efficient solutions duringGreenconstruction.construction is a relative ly new concept globally. The first ideas about this type of construc tion emerged back in the 1960s.
Fluctuating prices of building materials, i.e. metals on the global stock exchanges, have been noticeable since January 2021. Since then, prices have been constantly changing to a lesser or higher degree. Namely, the disruption of the prices of building and raw materials on the global market was caused by the coronavirus pandemic, but construction companies have managed to overcome the resulting situa tion with the help of state-funded measures and economic measures to mitigate the negative consequences of Covid19 on the However,economy.sincethe beginning of the Ukrainian crisis, the construction materials market has been recording a con stant increase in the prices of certain materials, primari ly steel products/rebars. There is a noticeable increase in the prices of construction chemicals, bitumen and bitumen
In the spirit of the aforemen tioned support for digitization of construction, our Association pre sented the report titled "OROOK Report 2.0 - Digital, innovative and sustainable solutions in the con struction industry" together with
Given that global trends in the entire industry are directed towards sustainable development, green construction is expected to expe rience full expansion in the coming period. I hope that the expansion of such projects will be boosted by the announced project "Dorćol Marina", which is implemented in the spirit of these trends.
10 REAL ESTATE IN SERBIA
When sustainable development and ecology are mentioned, most people think of environmental pro tection and waste. Green construc tion is preventive for environmen tal protection, as it creates benefits to the environment, but also the users of so-called green facilities. Costs associated with green con struction are higher than usual, but green buildings are cheaper as they rest on green energy principles.
The lack and outflow timeforbeenregiontheindustryconstructionthatproblemlabourqualifiedofisatheinentirehasfacingalong
Nobody can estimate how long will this instability in the supply and price of building materials will last. The Chamber of Commerce and Industry of Serbia has proposed to the Serbian Ministry of Construction, Infrastructure and Trans port to host a meeting of construction contractors and the Ministry. The goal of this proposal is to eliminate the conse quences of the current instability of the construction mate rial market, as well as to identify mechanisms for price-up dating to reduce the disparity.
Contemporary urbanization and city development trends have not bypassed Belgrade as one of the most dynamic capital cities in Europe
The new General Spatial Plan for Belgrade was recently present ed. What is foreseen in this plan? Can you give us some highlights? — I would just like to correct you slightly – this is not a new plan, but only an elaboration made for early public inspection. More precise ly, this means that, in the coming months, we will present the final proposal to the City of Belgrade regarding the general spatial plan.
he draft for early public inspection of the new General Spatial Plan of Belgrade foresees greater protection of public green areas and significant cultural and historical buildings. We spoke with the Chief Urban Planner for the City of Belgrade, Marko Stojčić, about long-term development plans for the capital and many other related issues.
It is difficult to single out the most interesting segments for the simple reason that the entire spatial plan is one unit consisting of at least 15 sub-units related to each individual area. What is your view of the education strat egy? What is it that we, spatial planners, should do with the city and the state in terms of invest ments to influence education itself? These are the questions we want to provide answers to. Also, there is the question of how we see the development of health care in frastructure. Traffic is certainly one of the most important issues too. What are the traffic interven tions that we will do in the coming period, which aim to completely reverse the situation in the city in terms of the number of cars, which must be curbed? Certain ly, we can do this with the con struction of the subway system and on the other hand, encourage all citizens of Belgrade to return to walking and cycling to become one of the most important means
BELGRADE IS ABOUT TO UNDERGO A TRANSFORMATIONSIGNIFICANT
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Although this plan contains the word ‘spatial’, it is still a strategic plan for the development of Bel grade in all areas. It contains our views and visions of what should happen over the next 20 years, and have an impact after these first 20 years.
STOJČIĆMARKO
Chief Urban Planner for the City of Belgrade
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We think that Belgrade should be transformed from a classic in dustrial city into a city with a dom inant intellectual industry, and for that, we need a city of highly edu cated people who will create the largest part of the gross social product in the future.
Is there a plan to designate zones for individual housing where new buildings would be built that would also bring a new quality of life like, for instance, similar to American suburbs? It seems that such set tlements are missing in modern city development.
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So-called green construction is
nicipality of Surčin, on the west side of the city, on the left bank of the Danube, in the north part of the city, in the parts of Voždo vac that gravitate towards Avala and on the south side of the city. We can expect to see such urban developments there.
— Individual housing zones were one of the topics we dealt with, considering that in the last 30 years, these zones disappeared and were replaced by collective housing zones. We are aware that there is a need for two-floor res idential buildings, which is one of the most comfortable types of housing that has survived the cen turies. We expect the construction of these new zones of individual housing to take place in the mu
Where will the new collective housing zones be located? Will the development of traffic routes and the subway follow these di rections of the city's expansion?
How much have the newly built neighbourhoods and buildings throughout the city contributed to changing lifestyles and quality of life? Have modern urban trends definitively intersected with the concept of dormitory-like housing blocks?
— Newly built settlements are a legacy of the 21st century. For them to be commercial, that is, for every real estate developer who builds them to be profitable and for someone to want to buy a residential unit in such buildings, they have to have additional facil ities needed for the population to exercise a high degree of auton omy. This refers to the fact that each of these settlements must have shops of various categories and often also health care facili ties. They need to also have aux iliary objects for children's institu tions. This is something that today's buyer is looking for. For someone who lives in the city of Belgrade, which is the capital of Serbia and a city that is rapidly developing, all these things are necessary, espe cially since the people of Belgrade are becoming increasingly demand ing and need more additional facil ities. This is not only a characteris tic of Belgrade but also of all other cities worldwide. What may have influenced that was the arrival of foreign real estate developers ten years ago who first started such interventions in the area. Conse quently, our developers accepted that model as sustainable in the long run. Of course, these are no longer dormitory-style buildingsthey are much more comfortable for the residents who live in them.
— The collective housing zones are already planned, as stipulated in detailed regulation plans. What we still need to do is to create these zones by implementing the aforementioned plans in the next fewTheyears.subway system has already predicted zones where new ur banization activities are expect ed. I will mention Makiško Polje as an example of this, where we have a slightly larger scale collec tive housing. These buildings are not going to be built by private real estate developers. Rather, the owners of land plots here can pick and choose which real estate de veloper should build on their land or become developers themselves.
of transportation in the city.
one of the more popular topics worldwide. What place do green areas have in the development of urban areas and will the growing need for people to stay in nature change living habits and maybe even the locations of new housing blocks? There have been some at tempts to build residential blocks in rural areas in the direction of Avala and Kosmaj. Do you think this will become a new trend and do you have ready solutions to balance out such development? — Certainly, Belgrade citizens live in a very green city. It is something that we are used to and that we love. We also live in such a geo graphical area that has abundant greenery. However, Belgrade is a city of moderate residential density that does not allow green space to be developed in every single loca tion, so our strategy was to declare the area a public green space wher ever possible so that every resi dent of Belgrade can have a walk in a park and enjoy clean air and beautifully landscaped green areas.
The fact is that we are con stantly looking for areas around downtown to build larger green spots. An example of this is the change of strategy for Ada Huja, which was planned for urbani zation decades ago. We decided that Ada Huja will become a na ture’s oasis, something similar to Ada Ciganlija, and we are now in the initial phase of implementing that. So, in the next few years, Ada Ciganlija will get its double called Ada Huja. In terms of individu al residential buildings which are now quite interesting and which are being built in the direction of Kosmaj in the municipality of Sopot and the municipality of Voždovac, this is something that is becoming increasingly popular. People want to avoid the hustle and bustle of a big city. They want peace and nature, which is completely logical and in line with the basic needs of every human being. So, I expect that we will receive more and more requests for the construc
You asked why are all those spaces appealing to property devel opers? Simply put, these are large empty areas where large urban in terventions can be made. However, we, as responsible people, will not allow everything that we consider or that each profession considers to be a natural attraction to be en dangered and urbanized.
— Regarding the Zoo, as an archi tect, I can agree that Kalemegdan is not the best natural place for both the people of Belgrade and the animals. Especially since it has very limited space and it is impos sible to further develop the zoo as an important city attraction. We are currently considering certain loca tions, primarily in the municipality of Surčin, but we have not yet come to a final decision on the new location of the Belgrade Zoo. This is a topic that we are always thinking about.
tion of buildings that are located in the natural environment.
even greater than 99:1 in favour of new trees. When it comes to cutting or moving some trees in individu al cases, this happens only when that’s the only available option due to the development of the city. In parallel with that procedure, signif icantly more trees are planted on every surface wherever possible.
14 REAL ESTATE IN SERBIA
for which urbanization plans have been drafted decades ago. There will be one segment for the bulk cargo port, which Belgrade simply has to have in its wider city area.
— All of the areas that you men tioned have been protected by the Belgrade government. There is no planned construction there. So Makiško Polje or, to be precise - the area between Obrenovački Road and the Sava - is an area that has now been defined as a public green zone in the detailed spatial regulation plan for this year. I already mentioned Ada Huja. Veliko Ratno Ostrvo also comes under the same category as a public green zone and there is definitely no construction there. A large part of Borča is a green area too. The Danube foreland is also not under construction except for the part
How does the city government protect public spaces and impor tant buildings? Unfortunately, many old buildings have been de molished, many trees were cut down, and some public areas were devastated due to poor quality im plementation. How do you plan to deal with these problems? Are there mechanisms and red lines in place to rectify these problems? — I have to disagree with your statement that a lot of old build ings were demolished and a lot of trees were cut down. If you are re ferring to old buildings, they are individual cases. Some were de molished because it was deter mined that they did not have el ements of cultural heritage. Yes, there are a number of buildings that were illegally demolished, but the current situation is such. It is important that our Institute for the Protection of Cultural Monu ments is working fast and for the first time, will produce reports on all cultural and historical units in Belgrade. More than half of those elaborations have already been adopted and now we have govern ment decisions in place that clearly protect all the cultural heritage in Belgrade. I expect that next year, at the latest, all units will be put under protection and then we will not have to worry about not being clear about what constitutes cul tural heritage, what can be demol ished and what Unfortunately,cannot.until seven or eight years ago, no one took care of that. I have to thank the Insti tute for the Protection of Mon uments for actively starting this process and managing to draft most of these studies. Regarding cutting down trees, Belgrade now has 8 to 10 thousand more trees compared to the previous year. In over three years of my term, only a few trees were cut down, and as the numbers show, almost 30,000 new trees were planted. The ratio is
How can we protect Makiško Polje, Veliko Ratno Ostrvo, Ada Huja, Sava Embankment and swamps in Borča? Why are these spaces attractive to private investors? Does the new General Spatial Plan provide for the protection of these areas?
We are aware that there is a need thehashousingtypescomfortableofwhichbuildings,residentialtwo-floorforisonethemostofthatsurvivedcenturies
Is there a plan to relocate the Bel grade Zoo? The current location is absolutely unacceptable for animal welfare and the vicinity of a medi eval fortress that aspires to be in cluded in the UNESCO list.
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The vision behind Belgrade Waterfront is to bring the world to you
step outside the comfort zone is what we etch into our memories. As humans, we are attracted by new journeys that expand our horizons and help us understand the world. The vision behind Bel grade Waterfront is to bring the world to Standingyou.as the tallest building in the region, Kula Belgrade will host the first St. Regis hotel and branded residences in this part of Europe. The luxurious brand known for its rich tradition span ning more than a century and its refined rituals that are uniquely crafted to provide guests with an exceptional experience will soon open its doors in Belgrade, cre ating a new dimension of luxury.
A walk through Belgrade Water front takes you on a global journey, giving you the chance to experi ence all the curiosities of the Asian cuisine or try some of the best cock tails in the entire city, all the while basking in the calm of a sunset on the bank of Sava River.
s seen from the river front, Belgrade Water front is a towering monument to architec tural excellence, diverse lifestyles and stands as the epitome of modern urban living. From inside, the new urban complex offers an unparalleled standard of living with a novel approach to offer modern buyers everything they desired, regardless of lifestyle, age, or interests.
VučkovićPredragPhoto:
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selection of premium apartments designed to accommodate all life styles. If your deal day ends with a glass of exquisite wine in the privacy of your garden or if you prefer a stunning panorama as the day comes to an end, your day dreams will find their foothold in the reality of Belgrade Waterfront.
An experience, an emotion, a
Whether you prefer the intimate and cozy atmosphere of a studio apartment or the grand feeling a four-bedroom apartment offers, Belgrade Waterfront has a unique
A spectacle need not be in motion. Art may indeed have other purposes other than itself. A res idential complex can be so much more than an address. Belgrade Waterfront’s approach to modern living is the cornerstone of the life you deserve.
So far, more than 4,500 apart ments have been already sold. Res idents have moved into 7 buildings since the beginning of the projects, in more than 1,500 apartments, and many more are expected to be moved into by the end of the year.
The World on the Palm of Your Hand
The WaterfrontBelgradebehindvision is to bring the world to you
The Beating Heart of Belgrade Belgrade is well known for its frenetic energy, way beyond the borders of our country. The Serbian capital stands proud as one of the most interesting destinations in Europe not only for its rich and tu multuous past and unique architec ture that is rarely seen anywhere else in the world but because of its pulsating rhythm that never lets the city sleep.
From art shows to grand con certs, Belgrade Waterfront offers its residents a unique position to experience some of the most magnificent events the capital will ever see. Just a few weeks ago, art lovers had the pleasure of listen ing to Andrea Bocelli, the world-fa mous Italian tenor and Portugal’s queen of fado – Mariza. A striking combination of different energies perhaps most adequately describes the harmonic synergy contained within Belgrade Waterfront.
A Choice of Your Own
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A NEW WAY OF URBAN LIVING IN BELGRADE
With the quality of life in mind, all buildings within Belgrade Wa terfront feature 24-hour-staffed reception areas, private yards, and parking spots, so that you can say goodbye to the inner-city pursuit of finding the last free parking spot.
COMMENT
the real estate market last year amounted to 6.1 billion euros, which is a 47% increase compared to 2020, according to the data collated by the State Geodetic Institute (RGZ). In the first quarter of this year, the total amount of money on the real estate market stood at 1.6 billion euros, which is a 22% increase rel ative to the first quarter of 2021, a record year so far. The number of sales contracts also went up by 6.7% if we compare the first quarter of this year and last year.
HOW STABLE IS THE REAL ESTATE MARKET IN SERBIA?
The real estate market, both here and in other countries, was exposed to various influences in the previous period. After the coronavirus pandemic, it was significantly impacted by the situation in Ukraine, as well as higher prices of construction materials and inflation
T
In Serbia, real estate invest ments are the highest in the apartment segment. Logically, the volume of construction cor responds to sales figures, so the highest number of apartments is sold in Belgrade and Novi Sad. It is interesting to note that the Ča
Belgrade Novi Sad Niš Kragujevac apartmentsExisting 2,624 €/sqm 1,920 €/sqm 1,381 €/sqm 1,138 €/sqm Newly apartmentsbuilt 2,348 €/sqm 1,929 €/sqm 1,824 €/sqm 1,481 €/sqm Real estate prices
APARTMENTS MOST IN DEMAND
The total amount of money on
*average advertised real estate prices on the 4zida.rs website READ THIS ON WEB
16 REAL ESTATE IN SERBIA
he real estate market, which is also sensitive to global macroeco nomic developments, perfectly reflects the economic sit uation in the country. In the past few years, it was significantly af fected by the coronavirus pandem ic, higher prices of construction materials and transport, as well as a lack of workforce, inflation, and the situation in Ukraine. Despite all that, the real estate market in Serbia is breaking records. Real estate, in addition to being a ne cessity, is increasingly becoming an investment in Serbia.
II quarter 2,267 €/sqm 1,961 €/sqm 1,453 €/sqm 1,269 €/sqm
It has thesecondstronglywilldevelopmentsmacroeconomictheestimatedbeenthatimpactofbefeltmoreinthehalfofyear
tion contributes to local develop ment, and this, in turn, encourages apartment owners to raise the price of their apartments located in older buildings. The vicinity of new office buildings, large shop ping centres and other facilities which are considered useful for people's lives can also lead to an increase in the price of apartments in a certain area.
Prices of apartments under construction, per square metre
FLUCTUATIONS IN PRICES OF SQUARE METRES IN SERBIA
*data from the 4zida.rs website
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According to RGZ data, in the first quarter of this year, 32,164 sales contracts were concluded. All major cities in Serbia record ed growth in property sales if we compare the first quarter of this year and the previous year. In Bel grade, sales grew by 6.6%, Novi Sad by 13.7%, Niš by 20.5% and Kragujevac by 11.1%. The highest number of newly built apartments was sold in the Belgrade municipal ity of Savski Venac, where the Bel grade Waterfront is also located, which holds a record for the highest price per square metre of a newly builtAccordingapartment.todata from the real estate advertising site 4zida.rs, the average advertised price of apartments in old buildings in Bel grade is 2,261 euros/m2, and 2,314 euros/m2 in new buildings. Realized sales prices are lower on average by around 20 to 30 percent, the cross-referenced data from RGZ and 4zida.rs show.
I quarter 2,294 €/sqm 1,803 €/sqm 1,401 €/sqm 1,032 €/sqm
In larger cities, the high prices
jetina municipality ranks third in this respect. Last year, more apart ments were sold in Zlatibor than in any other town in Serbia, exclud ing Belgrade and Novi Sad.
The real estate market in larger cities has been expanding, es pecially if we look at newly built apartments. However, this does not apply to all cities in Serbia. Smaller towns have been recording stagnation, and in some places, a drop in prices, especially of apart ments in older buildings. In smaller towns, there is also less interest in new apartments, and consequent ly, there are fewer new buildings there. Last year, not a single new apartment was sold in Bor and Kikinda. We can conclude that, when talking about record prices per square metre or the number of realized sales contracts, we are primarily referring to business, uni versity or tourist centres in Serbia.
of a square metre of apartments in old and new buildings are pri marily a result of high demand. All stakeholders on the real estate market testify that demand exceeds supply, and that good apartments are quickly sold. Also, the prices of apartments in older buildings are largely influenced by the price of apartments in new buildings. This is best noticed in the example of the Belgrade municipality of Savski Venac. In the last couple of years, during the construction of the Bel grade Waterfront development, Savski Venac became the record holder not only in terms of the price per square metre of apart ments in new buildings but also for the prices per square metre of apartments in older buildings. In this regard, Savski Venac was ahead of the very centre of Bel grade – Stari Grad. New construc
The real estate market, both here and in other countries, was exposed to various influences in the previous period. After the coro navirus pandemic, it was signif icantly impacted by the situa tion in Ukraine, as well as higher prices of construction materials andNevertheless,inflation. in larger Serbian cities, there has been no significant drop in real estate prices so far. Thus, in Belgrade,
Belgrade Novi Sad Niš Kragujevac
In late March, the 4zida.rs website conducted a survey to examine the impact of the situa tion in Ukraine on the real estate market in Serbia and how market stakeholders - buyers, tenants, property owners, real estate agen cies and real estate developersview the new situation.
interest rates on housing loans, ex pressed in dinars and euros.
Theworkforce.secondpart of the year will bring clearer forecasts regarding price trends for both older and new apartments. What we can currently conclude about the domestic real estate market is that in previous, turbulent periods, it showed signif icant flexibility, especially in those municipalities where real estate demand has been high.
Thus, studio apartments in the capital are rented on average for 221 euros, one-room apartments for 321 euros, two-room apart ments for 552 euros, three-room apartments for 879 euros, and fourroom apartments for 1,558 euros, according to data from 4zida.rs. These prices are even higher in the most popular Belgrade mu nicipalities - Savski Venac, Stari Grad, Vračar and Novi Beograd.
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investment.Theresearch additionally showed that a different price trend is ex pected for apartments in older and new buildings and that these two markets cannot be viewed collec tively. However, while in the case of apartments in older buildings, un certainty about housing loans and inflation can lead to stagnation or a drop in prices, in the case of newly built apartments, other factors can most likely influence the price such as the shortage and increase in the price of construction materials, the increase in the logistics and trans port costs and lack of a construc tion
THE IMPACT OF THE SITUATION IN UKRAINE ON THE SERBIAN REAL ESTATE MARKET
in the first quarter of this year, the average advertised price of apartments in older buildings was 2,294 euros/m2, and in the second quarter, 2,267 euros/m2. In Novi Sad, the price per square metre of an apartment even recorded an increase, if we compare the first and second quarters of this year.
However, it has been estimated that the impact of macroeconom ic developments will be felt more strongly in the second half of the year. Prices will be additionally af fected by the eventual continua tion of inflation, or potential major crises in the economies of more de veloped countries, on which our economy largely depends.
The survey also showed that real estate agencies estimated that those buyers who buy real estate for their own needs delay ing their purchase (due to antici pation of inflation) could poten tially affect real estate prices, especially of apartments in older buildings, while the fear of real estate price increases can ac celerate the purchase for those buyers who already have secured funds or are investment-orient ed buyers. In the aforementioned survey, 15% of respondents stated that they buy real estate as an
The situation in Ukraine is one of the factors that affected the real estate market in Serbia. However, it did not significantly affect the growth of purchase prices, as much as it affected the rental prices of apartments and the growth of demand, especially in Belgrade.
The survey showed that the situation in Ukraine is of greatest concern to buyers who want to buy real estate with a help of a mort gage. They said that they had not completely given up on the pur chase, but that they would further consider the type and conditions of a mortgage. It is estimated that their decision was additionally in fluenced by the recent increase in
Data from RGZ show that housing loans are most often taken out for the purchase of apart ments, and the share of proper ties that were paid for in this way amounts to 28%, if we look at the first quarter of this year. In the bigger cities in Serbia, apartments were mostly bought in Niš (40%), Novi Sad (33%), Belgrade (31%) and Kragujevac (25%).
In apartmentsmetreofhighcities,largerthepricesasquareof in old and demandresultprimarilybuildingsnewareaofhigh
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— At a time when the culture of discarding appliances after a short period of use is spreading, Miele stands out for producing appli ances with a long-life guarantee. Today, consumers are sceptical when buying new devices because
more and more devices start to break down after the two-year warranty expires. When it comes to Miele appliances, the situation is completely different. In order to make sure that we offer our cus tomers only the best, absolutely every device that leaves the pro duction line undergoes numer ous analyses and checks and is tested for a life of use lasting at least 20 years, during which our devices work at full capacity and give flawless results all the time.
ZORAN DJURIĆ General Manager of Miele Serbia
CORPORATE
e spoke with Zoran Djurić, General Manager of Miele Serbia & Mon tenegro, about the famous brand and the secret of its success.
The motto of the Miele brand is "Immer Besser!” (Forever better!). Does that mean forever better than others or better than oneself?
In addition to guaranteed quality, Miele also attracts con sumers with its innovation. As one of the market leaders in in novation, guided by the priorities and needs of our customers, the company directs its investments to improvements, innovations and incorporation of new technolo gies, all intending to make every day household chores more effi cient and easier to perform. We pay special attention to the pres ervation of natural resources, such as the optimized use of water and electricity, and we strive to ensure that our devices contribute to the preservation of the environment.
This is validated by many com pleted projects, which include fur nishing luxury complexes such as Porto Montenegro, Porto Novi, Dukley Resort and Dukley Gardens.
At a time when the culture of discarding appliances after a short period of use is spreading, Miele stands out for producing appliances with a long-life guarantee tional design.
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How has the brand managed to maintain top quality for so many years? Is investment in technolog ical innovation crucial?
Miele has become a reliable partner in the real estate indus try by furnishing every space with high-quality appliances. Our company has a sector that is focused exclusively on the needs of architects, interior designers and real estate developers. Thinking about every step of the process, our team, together with architects and interior designers, designs the space and suggests products that will upgrade each project in the best possible way.
All these aspects contribute to maintaining our global posi tion, and in the last 10 years, in Serbia as well.
Has your cooperation with real estate developers resulted in new, higher living standards in newly built facilities?
We believe that design informs not only the external appearance of devices but also the complete ex perience of using them. Guided by this idea, we have developed new built-in kitchen appliances of Gen eration 7000, which, in addition to quality and advanced technol ogy, are characterized by excep
— From its foundation in 1899 to date, when it employs over 20,000 people, Miele has remained a fam ily-run company, committed to its customers, employees, the envi ronment and society in general. All this time, we have remained true to our brand promise because we have been nurturing tradition, innovation and unique quality for 120 years. When you choose a Miele appliance, you choose lon gevity, the best quality and supe rior design. We strive to be forever better than others and ourselves, and we achieve this by consistently holding ourselves to the highest standards we have set.
— The goal of the long-term co operation between eminent ar chitects, real estate developers, interior designers and the Miele Company is to offer users the best, namely quality and durability, for top-notch architectural services and our devices to be perfectly coordinated and as such, offer a higher standard and comfort, both in residential, as well as in business and tourist facilities.
environmentofpreservationtocontributeourtoandelectricity,ofoptimizedsuchresources,ofpreservationtoattentionspecialWeMontenegro&paythenaturalastheusewaterandwestriveensurethatdevicesthethe
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AVERAGE SALES TIME
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erty is to buyers, but also how high the demand is at a particu lar location. The strong demand in certain locations can also be af fected by certain economic factors – the creation of new jobs or the opening of factories or company branches. In smaller towns, there are fewer apartments on offer, so good opportunities quickly fly off the market,” said Jasmina Gavrilov Dražić, from the 4zida.rs website. In Belgrade, apartments are sold in an average of 66 days. However,
Average sales time for apartments under construction (in days)
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The real estate advertising site 4zida.rs has analyzed how long apartments for sale and rent appear in classified ads, that is, how long until they are rented out or sold.
OVERVIEW
There is a noticeable discrepan cy between the offer and demand on the real estate market, with the latter constantly growing, and as a result, quality apartments are being sold and rented out on the market more quickly. Market speed
The real estate advertising site 4zida.rs has analyzed how long apartments for sale and rent appear in classified ads, that is, how long until they are rented out or sold
Stari Grad 71 Savski Venac 95 Vračar 68 Zvezdara Palilula Voždovac Novi Beograd Zemun
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is one of the key indicators of high demand and its growth.
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Čukarica Rakovica
The average time of advertis ing apartments for sale, if we look at the entire municipality of Bel grade, is 66 days, and that's for apartments listed in old buildings. A similar time period applies for Novi Sad - 69 days, and Kragu jevac - 63 days. In Niš, there is a slightly higher demand among buyers, so apartments here are sold in an average of 51 days. It is interesting to note that Subotica holds the absolute record in terms of the shortest advertising time –it takes 34 days for an advertised apartment to be sold.
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“The average advertising time, i.e. the period that apartments are available for sale on our website, shows us how attractive the prop
e could say that the real estate market in Serbia continues to grow and break records, regard less of the impact of the situation in Ukraine, the increase in the price of construction materials and trans port, as well as the earlier impact of the coronavirus. This is best seen in the increase in the number of re alized sales contracts on the market, as well as more money on the market.According to the data collated by the State Geodetic Institute (RGZ), in the first quarter of 2022, the number of sales contracts in creased by 6.7% compared to the same period of the previous year. Also, the total amount of money on the Serbian real estate market is higher by as much as 22 percent.
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Stari Grad 21 Savski Venac 34 Vračar 21 Zvezdara 15 Palilula 13 Voždovac 17 Novi Beograd 18 Zemun 14 Čukarica 15 Rakovica 17 Average time needed to rent out an apartment in Belgrade (in days)
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Longer sales time can also be an indicator that there is a certain disproportion between the price that the owner wants to get and the price that the buyer is ready to pay, so the waiting time for the right bargain is a little longer.
to rent a property.
Nevertheless, regardless of minor differences in the average sales time between cities and municipalities, we could say that quality apartments fly off the market very quickly.
This spring and at the begin ning of summer, there was an even higher demand for rental proper ties, especially in Belgrade. Such a strong demand is mainly due to the arrival of a large number of foreigners in the capital. This re sulted in a jump in rental prices, but also affected the time needed
The average advertising time of apartments for rent in Belgrade is 17 days. This means that, on average, owners wait just over two weeks for their apartment to be rented out. The situation is similar in Novi Sad, where the average time needed for an apartment to be rented out is 18 days, while in Niš and Kragu jevac it is 16 days. Of the larger cities, apartments are rented out the fastest in Subotica, where the average advertising time of apart ments for rent is 14 days.
“Offer of apartments for rent in smaller towns is not that big, so it shouldn’t come as a surprise that quality properties are rented out very quickly. So, for example, in Čačak and Sombor, the average time to rent an apartment is only 11 days, and in Kruševac 8 days. However, Kraljevo holds the record in this respect, where apartments are rented out in just 5 days on average. In these smaller towns,
all it takes for just one new factory to be opened to feel a shortage of apartments for rent,” says Jasmina Gavrilov Dražić from the real estate advertising website 4zida.rs.
STRONG DEMAND FOR APARTMENTS FOR RENT
Belgrade municipalities all have different rent-out periods. Apart ments are rented out the fastest in Palilula, followed by Zemun. Apartments in Savski Venac are usually on the rental market for the longest time - an average of 34 days. The situation is similar to that in the sales segment - there is a large number of apartments for rent in this Belgrade municipality, and many more are being built, so there is no pronounced shortage of available properties.
the situation differs from munici pality to municipality. The biggest demand for properties is in Zemun and Rakovica. We can see that the shortest sales time is in the Savski Venac municipality, fol lowed by Stari Grad, Novi Beograd and Vračar, i.e. the municipalities where there is strong demand for real estate. However, these figures, slightly higher than the average, can be explained by the fact that in these three municipalities, despite the strong demand, there is still a large number of available proper ties, plus new apartments are cur rently being built.
In addition, the municipalities of Savski Venac, Vračar and Stari Grad have the highest number of luxury properties, which, as a rule, take a little longer to be rented in comparison to more affordable apartments, usually rented out by students.
in good condition, their facades are falling off, they are neglected and dilapidated, and salon-type apart ments are often dysfunctional for the modern way of life. There are no parking lots, traffic congestion is an all-day occurrence, the noise is unbearable, and air pollution is dan gerous for health. And yet, apart ments in such central locations as Stari Grad, Vračar, Dorćol or Savski Venac, have skyrocketing prices. On the other hand, new buildings re placing old ones in those same lo cations defy common sense. There is an excess of square meters and apartments, which only increases the congestion of the micro-loca tion and makes life difficult for both old and new residents.
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yard without a single tree and a concrete driveway for a car is being sold for the same or maybe a higher price than a house of similar square metre footage on the coast of Andalusia, on the famous Costa del
ThereSol. are many such exam ples. Apartment prices in the very centre of Belgrade have long since exceeded 3,000 euros per square meter, although this part of the city does not deserve such a high price in any way, except perhaps for its status. Old buildings, which often have historical value, are not
A vast number of luxury apart ments, that are being built in the neighbourhoods like the Bel grade Waterfront, contribute to the general increase in real estate prices. As this trend spreads from the centre to the suburbs, today we have a situation where people are living with basic infrastructure and suffering from massive illegal
R
eal estate prices in Serbia are going through the roof. Every day we are bombarded with news about the prices of real estate in Serbian cities, which keep shock ing us over and over again. There is a proliferation of ads on social networks which often cause outrage, and witty individuals make jokes and make comparisons with real estate prices in other parts of the world.For instance, a house, by all ac counts ordinary, which is located in a suburb of Novi Sad, has a small
PRICES
REAL SOAPPRICESESTATEINABUBBLE
by Dragan Nikolić THIS ON WEB
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The question is what losepropertiesexpensiveallburststhehappenwillwhenbubbleandthosevalue
By reviewing real estate prices in other parts of the world, we can gain insight into what our real estate prices should be
Real estate experts and agents have no explanation for this price growth, but they refuse to predict that the bubble will burst at some point soon. The current situation in the market is such that sales are extremely good, mostly thanks to the high demand among younger citizens who work in the IT and gaming industry. Tens of thou sands of young people work in this fast-growing industry where sal aries are astronomical not only in terms of Serbia but also Europe. All of them are at an age where they need to resolve their housing issues, and good salaries make them expedite their search while they have a good credit score. Banks use this opportunity and massively approve housing loans that are still affordable, so turno ver is quite good, and prices con tinue to rise.
When it comes to apartments on the outskirts, Belgrade ranks fourth with 1,800 EUR/m2, and it is below Bratislava (3,400 EUR/ m2), Zagreb (2,400 EUR/m2) and Budapest (2,000 EUR/m2).
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It is interesting to note that the real estate market in Serbia is very unusual and illogical at the moment. If we compare the prices of apartments in other European cities, we can see how this inflated price bubble in our country will cer tainly not last for long. The ques tion is what will happen when the bubble bursts and all those expen sive properties lose value. One of the biggest motivations for buying real estate, in addition to resolving your housing problem, is investing in a reliable
than a healthy real estate market. There is a great fear that all real estate buyers in this period will soon run out of their capital. Of course, the experts again claim that even if there is a drop in real estate prices (they persistently deny that this will happen), it will be insignificant. It would be real istic, however, to expect that this drop will be in real terms. And that would be tantamount to people losing their money in the 1990s’ pyramid schemes.
However,method.whatishappening in our country is more reminiscent of pyramid schemes from the 1990s
New market trends have also emerged, so an increasing number of people are choosing an alter native to the capital city, due to its poor quality of everyday life. They are choosing smaller cities, as well as rural areas, an hour's drive from Belgrade. This catapulted the market first in Novi Sad, and then in towns like Indjija, Stara Pazova, Pančevo, Ruma and Šabac.
By reviewing real estate prices in other parts of the world, we can gain insight into what our real estate prices should be. Belgrade belongs to the group of so-called beta minus cities in the global ranking published by GaWC (The Globalization and World Cities Re search Network), along with Sofia, Bratislava and Zagreb. However, our capital city falls very short compared to these three cities in terms of quality of life, judging by all parameters. Budapest and Bu
charest are two categories ahead, while Thessaloniki and Skopje lag behindWithBelgrade.3,100EUR per square
metre of real estate, Belgrade ranks third among the listed cities when it comes to apartment prices located in the city centre. The most expensive properties are in down town Bratislava (4,700 EUR/m2), followed by Zagreb (3,500 EUR/ m2), followed by Budapest with 3,000 EUR/m2, and Bucharest and Sofia, which are far behind, with the prices ranging from 2,300 to 2,400 EUR/m2. In Thessaloniki, an apartment in the city centre can be bought for 2,100 EUR/m2, and in Skopje for 1,500 EUR/ m2, which is the same price as a square metre in the suburbs of Sofia, Bu charest or Thessaloniki.
New lifeofpoorcity,toalternativechoosingpeoplenumberanemerged,havetrendsmarketalsosoincreasingofareanthecapitalduetoitsqualityeveryday
construction in the remotest parts of Belgrade as they can no longer find apartments that cost less than 1,500 euros per sqm.
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had over one million square metres of business space, of which about seven percent is unused which, in turn, leads to an increase in the rental prices. There is also a no ticeable trend in demand for larger premises, as well as convertible office space and open concept space. The current construc tion trend is impressive and over 250,000 square meters are under construction in many buildings. During significantlychangedemployersandemployeeshabitshome,workedmanypandemic,thepeoplefromsotheofboth
ccording to experts, the demand for office space in Belgrade is ex tremely high. However, walking through the city’s down town area, one can notice that there are a large number of busi ness premises that, despite being in prime and exclusive locations, are still empty. Images of graffi ti-stained storefronts and locked doors indicate an economic crisis, but they can also be a sign of changes in the mood of business users. The relocation of business activities from the city centre has been going on for a long time, and over the last decade, Novi Beograd has transitioned from a mass housing neighbourhood to the city's businessNumerousepicentre.buildings with offices
A NEW CONCEPT OF OFFICE SPACE
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WORKING FROM HOME
the well-being of employees is increasingly taken into account, which changes the trend in furnishing new office premises
HUBS FOR FREELANCERS
are springing up along Heroja sa Košara Boulevard and Milutin Mi lanković Street. Also, the skyscrap ers that are being rapidly built in our capital mostly consist of office space intended for rent. Large foreign companies that are opening their branches here lease space in these new Accordingbuildings.toexperts, Belgrade
24 REAL ESTATE IN SERBIA
Today,
Business hubs have become one of the more interesting trends in Serbia. Premises equipped for business with plenty of amenities, common rooms, meeting rooms and technical rooms are rented to freelancers who rent a work place (desk). On such premises, they carry out their activities with minimal business costs. Numerous skyscrapers currently being built in Belgrade have a dual purpose and are described as commercial and residential spaces. Certain floors are intended for housing, a number of square metres are re served for luxurious common fa cilities for property owners and tenants, while some floors have office space for rent.
by Dragan Nikolić
NEW BUILDINGS
The current construction trend is impressive and there are over 250,000 square metres of real
During the pandemic, many people worked from home, so the habits of both employees and employers changed signifi cantly. Although, at first glance, it may sound like a good solu tion which was certainly forced during the pandemic, working from home is not so popular with either employers or employees. The biggest problems that people working from the home face are the lack of working atmosphere, exchange of ideas with colleagues and difficulty in organizing meet ings. In recent months, there has been a noticeable trend of workers returning to offices, and this is something that the construction industry is anticipating. Working from home also had its good sides – comfort and leisure, which con tributed to increased productivi ty and a better mood in employ ees. These habits do not have to be sacrificed when the workers return to the business premises and that is why today the con struction industry is taking this on board more when designing new business premises.
The relocation
Almost all office space that is being built in Belgrade at the moment envisages an open concept that should provide greater comfort to workers. It often happens that these new offices are equipped so that workers no longer have their own desks, but instead use numer ous work surfaces that are avail able to them to suit their current mood. Everyone can sit where they want. In this way, workers can be grouped arbitrarily according to the needs of the job. There are separate rooms for meetings. The interior is arranged so that there are no classic chairs, but different armchairs and sofas. Much more thought is given to the well-being of employees than before. Such spaces are becoming increasing ly common, and in Belgrade, we have numerous examples of these spaces in buildings that are cur rently being built or renovated.
of epicentrebusinesstoneighbourhoodhousingfromtransitionedBeograddecade,overtime,onhastheactivitiesbusinessfromcitycentrebeengoingforalongandthelastNovihasamassthecity's
estate under construction. This summer, a building known as "Three Tobacco Leaves" was finally opened in Belgrade on the corner of the Kralja Aleksandra and Kneza Miloša boulevards. A large office building was built 11 years ago on the site of the once iconic Belgrade tavern of the same name, but for an unknown reason, it was not completed until now. Today, this is a modern, repre sentative building that is considered an A-class business building with a two-level-underground garage, a ground floor with business premises and eight floors with galleries. The facility spans 8,700 square metres of office space available for rent. The symbols of Belgrade and build ings that are under the protection of the state, such as Beogradjan ka and BIGZ, are being renovated, and after the reconstruction, they will become Class-A business prem ises. Numerous skyscrapers from Skyline in the Kneza Miloša Street to West 65 Tower in Novi Beograd are also being completed, and the construction of many new office towers and office buildings with a dozen floors is also planned.
OPEN CONCEPT
25 REAL ESTATE IN SERBIA
in cities, retail parks are spring ing up on the outskirts, not far from transit roads, which is why customers decide to visit them, rather than just stopping by them if they are on their way. The very concept of these shopping oases is such that it motivates custom ers mainly because shoppers can find everything they need at that moment in one place, including a parking space.
In contrast to the closed shop ping centres that are usually built
RETAIL PARKS
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he popularity of retail parks is growing year on year. The concept whereby consumers can find several attractive shops in one place and at the same time, have no problem finding a parking space is a winning combination. With a wide range of products and services and good traffic connec tions, retail parks provide custom
ers with comfort and significant ly reduce the stress of shopping that many feel. In addition to various clothing, footwear and sports equipment stores, there are also large supermarkets, furniture stores, pet food and equipment stores, as well as cafes and play rooms in retail parks.
Retail park developers in Serbia wisely choose the phased construction and opening of facilities, which contributes to stable growth and development
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T
RETAIL PARKS THIS
In terms of investing in retail parks, Serbia is, according to real estate experts, on a constant upward trajectory. The data from three years ago show that retail parks account for more than a third of the square footage of the total sales space, and this trend is constantly growing. It is also in teresting to note that retail park developers are guided by a smart strategy to build and open grad ually. They don’t go for large and oversized buildings, but carefully listen to the market and are re sorting to phased-out construc tion and opening.
by Dragan Nikolić
There are numerous retail parks
Not far from the IKEA depart ment store in Bubanj Potok near Belgrade, next to the motorway leading to Niš and right after the big interchange where the motor way intersects the Belgrade ring road, lies the newest retail park in Serbia – the AVA Shopping Park. Swedish IKEA is the Park’s devel oper, while the Novaston Company is entrusted with its management. AVA Shopping Park has a sales area that spans about 19,000 square metres, where you can find shops selling over 30 domestic and foreign brands. The park was opened in late May, right after the completion of the first construction phase. The second construction phase is due to be completed next year, after which additional 10,000 square metres will be added to the Park.
The new retail park under con
GO SHOP RETAIL PARK IN RUMA
NEST IN OBRENOVAC
The Go Shop Retail Park, cur rently under construction in Ruma, will be located at the very intersec tion of the Novi Sad - Ruma - Šabac main road, and near the future in tersection of the Fruškogorski Cor ridor. It will span 3.2 hectares, while the building itself will have 12,200 square metres.
AVA SHOPPING PARK
motorway stretch, in Dobanovci, Šimanovci and Pećinci, and near the Ruma junction. Hangars and warehouses are springing up on this stretch at an incredible rate.
27 REAL ESTATE IN SERBIA
struction in Leskovac brings a com pletely new concept to the Serbian market. It is presented as the largest shopping centre in Serbia south of Belgrade, and it will be a town within a town. What will distin guish it from other retail parks in Serbia are the amenities related to the entertainment industry. In ad dition to catering establishments and children's playgrounds, the park will also have a Dino park, a stage for performances and con certs, gatherings of old-timers, and an ice rink. The architecture will also stand out from other similar buildings as it will be a mix of urban and industrial styles, as the devel opers have kept a large number of buildings owned by the former Le skodrvo factory, in which location this park is being built.
It will house about 30 shops which have already been leased out, including the most famous brands operating in Serbia.
The data from three years ago growingconstantlythisspace,thefootageofthanforparksthatshowretailaccountmoreathirdthesquareoftotalsalesandtrendis
in Serbia, not only in big cities but throughout the country and in smaller areas. Despite the econom ic crisis and the ongoing coronavi rus pandemic, the construction of retail parks has not slowed down. The sales volume has decreased due to the crisis and the pandemic, but while the sales figures in shops are bad and have not yet reached the pre-pandemic level, it is higher in retail parks and shopping centres and has completely recovered. It is interesting to note that the pan demic actually contributed to the increased popularity of retail parks, as customers were more likely to shop in places that are open due to fear of the spread of infection. What is often overlooked is the share of warehouses and logistics centres in this construction niche. It is only logical that retail parks attract the biggest interest because they are oriented toward the end user - customer, but on the other hand, in this sector, there is an even greater demand for the construc tion of new logistics centres and the expansion of existing ones. We are witnessing an incredible trans formation of the area along the Šid
LESKOVAC RETAIL PARK
Construction of the second phase of the Nest Shopping Centre in Obrenovac is underway. This retail park opened to customers in late May, after the completion of the first phase. The developer is the Czech company RC Europe, and the Park’s official opening was attended by the Czech ambassa dor to Serbia, Tomas Kuchta. RC Europe has been opening retail parks in Serbia since 2017. The first one was opened in Kraljevo right next to the new sports hall in that city. In addition to Obrenovac, the company also plans to open retail parks in Vršac and Užice.
t a time when we are witnessing dangerous climate changes on a global level and the de struction of the environment, and cultural and historical heritage, we can only worry about our own future.Providing that the human race survived, earlier generations were afraid that their grandchildren would live in a post-apocalyptic, dystopian society. Then the fear shifted to our children, and as our lives drift away on an imaginary timeline, that fear becomes exis tential and personal.
28 REAL ESTATE IN SERBIA
The construction industry is the basis of every economy because it creates the infrastructure nec essary for both people's lives and business activities. For decades, profit came first and people and nature were seen as ordinary re sources to be used regardless of the consequences. That is why today we have dead rivers, pollut ed air, a large number of diseas es among the working-age pop ulation, and a socially stratified society. All of this will not come to an end quickly and easily, but changing the behaviour of large corporations, including those in the construction industry, is a neces sary first step towards a general change in society and the initia tion of a new, more humane and naturally oriented value system.
that they are socially responsible, that they care about the well-be ing of their employees and protect the environment. Investments in these areas are growing year on year, and innovations are coming more into focus.
It has become popular, especially among young people, to highlight some new values, including green construction, and aside from the fact that this might be just a fad, it should be welcomed.
GREEN CONSTRUCTION For consequencesofregardlesstoresourcesaswereandfirstprofitdecades,cameandpeoplenatureseenordinarybeusedthe
Living in cities polluted beyond all acceptable limits, consuming food grown in unhealthy and toxic soil, noise, excessive heating and visual pollution from advertisements are the reasons to focus more on alternative solutions
albeit modestly and shyly, but apart from the living location, nothing fundamentally changes. We, as a society, are left with the vicious habits of unhealthy living and con tinuing to live ‘the old way’, in a huge disagreement with the nature of which we should be a part.
As today's society is based on digitalization, the influence of social networks and media has grown so much that everything comes down to blindly following trends and fashionable attitudes. Fortu nately, one of these is the attitude about the need for a healthy en vironment and slowing down the phenomenon of global warming.
There is a trend of returning to the countryside and nature itself,
by Dragan Nikolić
Living in cities polluted beyond all acceptable limits, consuming food grown in unhealthy and toxic soil, noise, excessive heating and visual pollution from advertise ments are the reasons to focus more on alternative solutions. Few people, however, deal with this issue on a general, social or global level, which indicates the deep selfishness of modern society.
Green construction implies
The harsh neoliberal system has learned to adapt to trends in order to survive, so today we are witnessing an interesting shift in business goals. An increasing number of companies underline
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NATUREWARWILLHUMANKINDLOSEAWITH
A
Scienceon. has shown that build ings and the construction indus try are the largest single source of global warming. They consume almost three-quarters of electrici ty and generate about 40 percent of carbon dioxide. This segment also consumes 14 percent of drink ing water and generates every third kilogramme of non-recy clable waste. These are terrible data that indicate the harmful ness of the modern construc tion industry, and an even bigger problem is that few people are aware of it.
29 REAL ESTATE IN SERBIA
Initial investments in such con struction can be more expensive, but today there are more and more funds that support the implemen tation of new construction tech nologies. The town of Šabac in Serbia is a good example of this, which, with the help of the Euro pean Union, has been co-financ ing insulation projects for both individual and collective residen tial buildings for years, has opened biomass power plants, built stateof-the-art waste sorting facilities, and is the only city in Serbia to have a wastewater filtering plant.
These problems are solvable and just require basic knowledge and a little good will. If we applied what science says, then our houses and buildings would be much health ier and more economical, that is,
Unfortunately, there is still a predominant belief in our country that green construction is expen sive and unprofitable. Neither of those two is correct. The advan tages of green construction are
they would be more in harmony with nature and would provide us with the opportunity to exist for several decades.
multiple and their value cannot be expressed in money because it pro motes the quality of life, creates prerequisites for the better health of the population and provides us with much-needed hope for the survival of humanity.
Once upon a time, people built houses in a way everyandenvironmenttheconsideredthatnaturallawsinsense
Late last year, a green construc tion conference was held in Serbia, at which it was concluded that the overall situation is unsatisfactory, that is, that green construction has not yet grown roots in our country. Serbia has regulations according to which every new project must have the so-called energy pass port. The number of such build ings does not exceed 10,000 at the moment, which is very small con sidering that the total construc tion fund is measured in millions.
It all starts with picking the good building material. Proper in sulation of buildings with the use of stone or glass wool contributes to lower energy consumption for cooling and heating and prevents fire damage. The installation of high-quality, multi-chamber PVC doors and windows will bring great savings to the tenants themselves, especially during the winter months when there should be no waste of energy for heating. Connecting a large number of housing units to central heating systems that use renewable energy sources, e.g. biomass, significantly contributes to savings in the objects them selves, but also local administra tion systems. Last but not least, this kind of build protects our en vironment. Remember the winter months in Belgrade when it is im possible to breathe because of res idents using heating stoves and the increased emission of dangerous substances into the air?
Onceaccounts.upona time, people built houses in a way that considered the natural environment and laws in every sense. Care was taken to build houses from functional and natural materials, available in the immediate surroundings. That is why the houses on the coast are made of stone, and the houses on the mountains are made of wood. Attention was also paid to the climate, winds, precipitation, solar insolation, as well as the needs of the housemates themselves. The construction industry is again pur suing these principles because they have proven to be the most cost-ef fective in the long run and enable sustainable development. That is its essence today - sustainability in every sense, which implies the preservation of natural resources, the good health of the population and creating a future for the de velopment of the entire commu nity with steps that will not harm it later
growing awareness that resourc es are important to us, but also a return to some basic construc tion principles, as they were once upon a time when construction benefitted the whole communi ty, not just individuals and their bank
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30 REAL ESTATE IN SERBIA
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